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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron Files, 1989-1993 OA/ID Number: 13523 Folder ID Number: 13523-017 Folder Title: National Association of Manufacturers (NAM) 3/15/90 [OA 4727] [1] Stack: Row: Section: Shelf: Position: G 26 16 2 1 THE WHITE HOUSE Office of the Press Secretary For Immediate Release March 15, 1990 REMARKS BY THE PRESIDENT TO THE NATIONAL ASSOCIATION OF MANUFACTURERS Grand Ballroom Ramada Renaissance Hotel 10:27 A.M. EST THE PRESIDENT: Thank you, Dan. Thank you very much. Dan, thank you, sir. Short and sweet, right to the point. And I'm glad to be here. And I'm delighted to be back with this group. And I want to salute your president -- Jerry Jasinowski. I told Barbara that I'd be spending some time with people who have risen to the top of the financial world by controlling the disbursement of billions of dollars. She said: "You're addressing the baseball lawyers?" (Laughter.) But regrettably, baseball's "Opening Day" may not be on the calendar yet. But the truth is, the calendar offers each of us many "opening days" -- convenient launch points for a fresh start. Sometimes it is a new day, a new year. And now, really, it's a new decade -- a decade born amid the shouts of joy and triumph, a decade full of hope, barrelling with confidence towards a new century and a new era. The roll call is exciting, exhilarating, and accelerating. We call it the "Revolution of '89," but in Poland, it took about 10 years. Then in Hungary about 10 months. East Germany, 10 weeks. Czechoslovakia, 10 days. And Bulgaria and Romania right behind. Six nations in six months. And from six different tongues we heard the same one word -- freedom. The people of Central Europe believed it. They fought for it. And they deserve the credit. But take that word "Freedom," pick it up out of the newsprint, turn it over. And look on the back. And more often than not, you'll find that same proud label that adorns the products you produce: "Made in America." Eight years ago, Ronald Reagan stood before this group -- your group -- and issued a bold and simple challenge. He said, "America can serve as the catalyst for an era of unimagined human freedom and dignity." And the cry of that great President became the "shout heard 'round the world." Back here, especially in Washington, there may be some that are still plagued by doubt. Maybe in Washington. Certainly not in Warsaw. Asked if Radio Free Europe had been important to democracy in Poland, Lech Walesa responded with a question of his own. "Would there be Earth without the Sun?" was his reply. Maybe in Washington. But not in Wenceslaus Square. Last month Vaclav Havel praised our resolve -- the resolve of the United States of America, as "defenders of freedom," telling Congress that Czechoslovakia probably wouldn't exist today if it hadn't been for the Atlantic Alliance. And just yesterday -- I talked to him this morning -- Chancellor Kohl told me today that just yesterday he was speaking in East Germany, and he told them that he wouldn't be there MORE - 2 - and this wouldn't be happening if it hadn't been for the United States of America. And no quotes are needed to tell you the role of American persistence and American courage in standing up for liberty in Panama and Nicaragua. Yes, these are heady times. It's a wonderful time to be President of the United States and to be coping with this fantastic change that's taking place around the world. But the good news is, it isn't only overseas. Because the Revolution of '89 marks the triumph not only of free ideas, but also free markets. And when it comes to free markets, America continues to lead the way. Here again, there are doubters, and I can understand that -- some who worry about a slowdown. And true, our economy is not perfect. Each one of you knows that. And I don't want to paint an unrealistic picture. But look at the facts: The United States economy is the largest, strongest, most productive economy on Earth. Our standard of living is one-third higher than that of West Germany or Japan. And with less than five percent of the world's people, in 1988 Americans accounted for more than 25 percent of the world's production. Our GNP is more than two and a half times that of the world's number two economy -- Japan. And when a small percentage of people produce a huge percentage of wealth, there's a word for it. It's called "productivity. And it is spelled "U-S-A." (Applause.) Thanks in no small part to the commitment and imagination of the people and the companies represented here in this room, last year American exports of goods and services hit an all-time high -- over $600 billion. And today, the United States is once again the world's number one exporter. Nineteen-eighty-nine marked our seventh consecutive year of economic growth. And today, we see GNP up. Exports up. Personal income up. Now, some would say that every economy has its ups and downs. But take a look at what's down. The trade deficit. I'm not standing here relaxed and saying it's perfect. The trade deficit is down. The federal deficit -- still not happy with it -- it's down. The prime rate -- down. And last year's unemployment rate -- down the lowest since 1973. And the good news is reaching a broad cross-section of Americans. Nineteen-eighty-nine unemployment rates for blacks and teenagers were the lowest since the early '70s. And for Hispanics, the 1989 rate was the lowest recorded since the government began keeping separate data for this group back in 1980. But we're not just talking about statistics and numbers. As Dick Darman recently reminded me, "Torture numbers, and they'll confess to anything.' (Laughter.) It would take Darman to come up with that, but he did. (Laughter.) Well, what we're really talking about here is people. People who hold the two and a half million new jobs created just since I took office one year ago. For them, it means families and freedom, and it means dignity and decency, because two and a half million American jobs means two and a half million American futures. Speaking of futures, earlier I asked one CEO what he sees as the most lucrative growth industry in the 1990s. He said, "Being a lawyer connected with the Trump case." (Laughter.) Our people and our economy are strong. And so is our resolve. And it's going to be tested soon, as the dramatic new MORE - 3 - changes in the world produce dramatic new challenges in the world market. And so we must prepare now to meet these challenges. And our administration is committed to an agenda for growth. It's founded upon investing in our future, and every sound investment has its yield; America's yield is the growth dividend. The growth dividend will provide Americans with jobs and opportunity, higher living standards and a legacy of prosperity. So achieving solid and sustainable growth is my most fundamental domestic priority. And it's why I've proposed a strong agenda of growth initiatives. Look at -- this is a marathon, this isn't a sprint; it is a marathon. And we can't produce the products needed to capture world markets by focusing on results one quarter at a time. We need to return not only to yesterday's values, but yesterday's thinking -- the long-term thinking and investment-in-the-future way of doing business that produced the healthy climate that we enjoy today. First, we need to bring more of America's investment capital back into the productive economy. And lowering the cost of capital will assure the continued investment in productive assets and human resources that are needed to keep our manufacturing sector the most competitive in the world. The bottom line: It's time for Congress to pass the capital gains tax cut. Here's what we're up against. Japan, capital gains rate, five percent; South Korea, zero; Taiwan, zero; West Germany, zero; Singapore, zero; Hong Kong, zero. And the list goes on. And we need your support for this critical tax cut. And America wants it done right. America wants it done responsibly. And America wants it done now. (Applause.) It means competitiveness and it means jobs. And so let them tell me that I'm favoring some tax cut for the rich; I am favoring jobs for the working man and woman in this country. And second, we need to keep these interest rates down. And we are committed to helping that process by going to the heart of the matter. We submitted a budget that will continue to bring the federal deficit down. And today I call on the budget committees to fulfill their legal responsibilities and come up with a budget resolution by April 1st. That is two weeks away. And it's time to act -- the time to bring the deficit down. And third, America needs a booster shot of new ideas along with the infusion of new capital that our tax cut -- capital gains differential will provide -- matching investment capital with intellectual capital. And so I call on Congress to help sharpen America's competitive edge: double the budget of the National Science Foundation; bring funding for research and development to a record high; make the research and experimentation tax credit permanent; and expand the Eisenhower education grants for math and science. (Applause.) And fourth, we must stand behind our work force and the quality of our products. American workers today are good workers -- best in the world. But we need to keep pace. Their children are the workers of tomorrow and we owe them a better education, with an emphasis on basic skills, the sciences, math and engineering. And we're going to do this in partnership with the American governors and schools, giving those in need a fair start through Project Head Start, raising our high school graduation rates to at least 90 percent. And in science and math, our goal is unambiguous -- first in the world by the year 2000. You see, we've got to reestablish standards and reestablish expectations -- the kind of quality control so essential to everything that America produces. Quality is something that you -- you understand it. You MORE - 4 - understand it better than most Americans. And quality in manufacturing and quality in education are intertwined. These goals are an important step towards restoring quality in education. They help focus our efforts less on input -- the amount of money that goes into our schools -- and more on output, the quality of the student that comes out. The kind of basic quality control is also basic to producing quality goods. And it's being spurred on in American manufacturing by steps taken within your own ranks -- steps like the prestigious, high-level competition produced by awards like those named after the late Mac Baldrige. It's also spurred on by efforts to ensure a literate work force. We salute manufacturers' efforts like the one that Barbara, my wife, visited in Michigan recently -- a model of cooperation between the Ford Motor Company and the United Auto Workers. So many more like it that you all are involved in. And finally, it's essential that we have a drug-free work force. One way to stop drugs at work is to make sure that it never starts. Pre-employment drug screening -- because if you're not part of the solution, you're part of the problem. A drug-impaired work force is one of the ways in which American competitiveness can suffer from a self-inflicted burden. But it's not the only one. So next I call for Congress to act now to make the U.S. marketplace work better through two basic reforms: product-liability reform -- to increase our competitiveness without compromising safety -- (applause) -- and antitrust reform -- to remove obstacles to joint production ventures by U.S. companies. (Applause.) As I've studied the problem and trying to work with Congress on it and working with our environmentalists and business people, I am also convinced that America's growth need not come at the expense of the environment. Our natural resources are invaluable assets, and like any other assets they need to be maintained in order to sustain our ability to grow. For 13 years, Congress has been unable to pass a new Clean Air Act. Two weeks ago, we reached a breakthrough -- a bipartisan agreement to untangle the web of regional politics that has stopped clean air. I am very pleased to compliment the Senate leadership for their very constructive negotiations. And today I call upon the Senate to now pass Clean Air -- to stand by the agreement -- and to protect our environment without saddling the bill with new subsidies and cumbersome rules. (Applause.) I mentioned self-inflicted burdens and, of course, not all our competitive burdens are self-inflicted. There are also foreign barriers to U.S. exports which must be addressed. And earlier this month Prime Minister Kaifu and I agreed on the need for action on what we call "Structural Impediments Initiative" to break down non-tariff barriers to the Japanese market. And we are pressing hard to get the Japanese government to address specific trade categories. We must move aggressively to open markets, not just in Japan but around the world and expand our share of global trade. For those of you who follow the Japanese market, you'll agree with me that we need to have more openness there, I can tell you not only were the Kaifu talks good, but the talks that we had with the former Prime Minister Takeshita when he was here just a handful of days ago. We have got to have them understand the seriousness of the problem we face. I still believe that for far-reaching, fundamental reform our best hope is the proposals that we have made in the Uruguay round of the GATT negotiations. We're determined to make a level playing field. Let America compete in an arena of fair trade, and we will MORE - 5 - take on anyone, anytime, anyplace. (Applause.) As in Berlin, barriers are coming down all over the world. It took years of persistence, but the ideas championed by America -- freedom, democracy, competition and investment -- are flourishing because they work, because they are the best. It can be the same for American goods. In 1986, on the eve of July 4th, a single blue laser split the darkness over New York harbor -- a man-made lightning bolt that re-lit the torch of a reborn Statue of Liberty. The torch has been held high ever since. And today that light continues to inspire hope from Panama to Prague, from Moscow to Managua. Somehow, a recent bit of news seems fitting: the bald eagle -- the American eagle -- may soon come off the endangered species list. Ladies and gentlemen, America is back. And this time we are back to stay. And I look forward to working with this organization, your member companies, to doing what we can in government to facilitate free and fair trade to help maintain and strengthen an economy that is good for the working man and the working woman of this country. Thank you for inviting me over. And God bless you. And God bless our great country. Thank you very much. (Applause.) END 10:49 A.M. EST NATIONAL ASSOCIATION OF MANUFACTURERS RAMADA RENAISSANCE AT TECHWORLD THURSDAY, MARCH 15, 1990, 10:30 A.M. THANK YOU, DAN. AND I WANT TO SALUTE YOUR PRESIDENT -- JERRY JASINOWSKI. I TOLD BARBARA I'D BE SPENDING SOME TIME WITH PEOPLE WHO HAVE RISEN TO THE TOP OF THE FINANCIAL WORLD BY CONTROLLING THE DISBURSEMENT OF BILLIONS OF DOLLARS. SHE SAID: "YOU'RE ADDRESSING THE BASEBALL LAWYERS?" 1111 BASEBALL'S "OPENING DAY" MAY NOT BE ON THE CALENDAR YET. BUT THE TRUTH IS, THE CALENDAR OFFERS EACH OF US MANY "OPENING DAYS" -- CONVENIENT LAUNCH POINTS FOR A FRESH START. SOMETIMES IT IS A NEW DAY, A NEW YEAR. NOW, IT'S A NEW DECADE -- A DECADE BORN AMID SHOUTS OF JOY AND TRIUMPH, A DECADE FULL OF HOPE, BARRELLING WITH CONFIDENCE TOWARDS A NEW CENTURY AND A NEW ERA. - 2 - THE ROLL CALL IS EXCITING, EXHILARATING, ACCELERATING. WE CALL IT THE "REVOLUTION OF '89," BUT IN POLAND, IT TOOK ABOUT 10 YEARS. THEN IN HUNGARY ABOUT 10 MONTHS. EAST GERMANY, 10 WEEKS. CZECHOSLOVAKIA, 10 DAYS. AND BULGARIA AND ROMANIA RIGHT BEHIND. SIX NATIONS IN 6 MONTHS. AND FROM 6 DIFFERENT TONGUES WE HEARD THE SAME ONE WORD -- FREEDOM. THE PEOPLE OF CENTRAL EUROPE BELIEVED IT. THEY FOUGHT FOR IT. AND THEY DESERVE THE CREDIT. BUT TAKE THAT WORD "FREEDOM" SOMETIME, PICK IT UP OUT OF THE NEWSPRINT AND TURN IT OVER. AND LOOK ON THE BACK. MORE OFTEN THAN NOT, YOU'LL FIND THE SAME PROUD LABEL THAT ADORNS THE PRODUCTS YOU PRODUCE: "MADE IN AMERICA." - 3 - EIGHT YEARS AGO, RONALD REAGAN STOOD BEFORE THIS VERY GROUP AND ISSUED A BOLD AND SIMPLE CHALLENGE. HE SAID: "AMERICA CAN SERVE AS THE CATALYST FOR AN ERA OF UNIMAGINED HUMAN FREEDOM AND DIGNITY." III AND THE CRY OF THAT GREAT PRESIDENT BECAME THE "SHOUT HEARD 'ROUND THE WORLD." III BACK HERE, ESPECIALLY IN WASHINGTON, THERE MAY BE SOME STILL PLAGUED BY DOUBT. 11 MAYBE IN WASHINGTON. BUT NOT IN WARSAW. ASKED IF RADIO FREE EUROPE HAD BEEN IMPORTANT TO DEMOCRACY IN POLAND, LECH WALESA RESPONDED WITH A QUESTION OF HIS OWN: "WOULD THERE BE EARTH WITHOUT THE SUN?" MAYBE IN WASHINGTON. BUT NOT IN WENCESLAUS SQUARE. LAST MONTH VACLAV HAVEL PRAISED OUR RESOLVE AS "DEFENDER [S] OF FREEDOM," TELLING CONGRESS THAT CZECHOSLOVAKIA PROBABLY WOULDN'T EXIST TODAY IF IT HADN'T BEEN FOR THE ATLANTIC ALLIANCE. AND NO QUOTES ARE NEEDED TO TELL YOU THE ROLE OF AMERICAN PERSISTENCE AND AMERICAN COURAGE IN STANDING FOR LIBERTY IN PANAMA AND NICARAGUA. 1111 - 4 - YES, THESE ARE HEADY TIMES. BUT THE GOOD NEWS ISN'T ONLY OVERSEAS. BECAUSE THE REVOLUTION OF '89 MARKS THE TRIUMPH NOT ONLY OF FREE IDEAS -- BUT ALSO FREE MARKETS. 11 AND WHEN IT COMES TO FREE MARKETS, AMERICA CONTINUES TO LEAD THE WAY. III HERE AGAIN, THERE ARE DOUBTERS. SOME WHO WORRY ABOUT A SLOWDOWN. TRUE, OUR ECONOMY IS NOT PERFECT, AND I DON'T WANT TO PAINT AN UNREALISTIC PICTURE. BUT LOOK AT THE FACTS: THE U.S. ECONOMY IS THE LARGEST, STRONGEST, MOST PRODUCTIVE ECONOMY ON EARTH. OUR STANDARD OF LIVING IS ONE-THIRD HIGHER THAN THAT OF WEST GERMANY OR JAPAN. WITH LESS THAN FIVE PERCENT OF THE WORLD'S PEOPLE, IN 1988 AMERICANS ACCOUNTED FOR MORE THAN 25 PERCENT OF THE WORLD'S PRODUCTION. OUR G.N.P. IS MORE THAN TWO AND A HALF TIMES THAT OF THE WORLD'S NO. 2 ECONOMY -- JAPAN. AND WHEN A SMALL PERCENTAGE OF PEOPLE PRODUCE A HUGE PERCENTAGE OF WEALTH, THERE'S A WORD FOR IT. IT'S CALLED "PRODUCTIVITY." AND IT'S SPELLED "U-S-A." III - 5 - THANKS IN NO SMALL PART TO THE COMMITMENT AND IMAGINATION OF THE PEOPLE AND COMPANIES REPRESENTED HERE IN THIS ROOM, LAST YEAR AMERICAN EXPORTS OF GOODS AND SERVICES HIT AN ALL-TIME HIGH -- OVER $600 BILLION. AND TODAY, THE UNITED STATES IS ONCE AGAIN THE WORLD'S NO.1 EXPORTER. 1989 MARKED OUR SEVENTH CONSECUTIVE YEAR OF ECONOMIC GROWTH. TODAY, WE SEE GNP -- UP. EXPORTS -- UP. PERSONAL INCOME -- UP. NOW, SOME WOULD SAY THAT EVERY ECONOMY HAS ITS UPS AND DOWNS. BUT TAKE A LOOK AT WHAT'S DOWN: THE TRADE DEFICIT IS DOWN. THE FEDERAL DEFICIT -- DOWN. THE PRIME RATE -- DOWN. AND LAST YEAR'S UNEMPLOYMENT RATE -- DOWN -- THE LOWEST SINCE 1973. AND THE GOOD NEWS IS REACHING A BROAD CROSS-SECTION OF AMERICANS. 1989 UNEMPLOYMENT RATES FOR BLACKS AND TEENAGERS WERE THE LOWEST SINCE THE EARLY 1970'S. FOR HISPANICS, THE 1989 RATE WAS THE LOWEST RECORDED SINCE THE GOVERNMENT BEGAN KEEPING SEPARATE DATA FOR THIS GROUP IN 1980. - 6 - BUT WE'RE NOT JUST TALKING ABOUT STATISTICS AND NUMBERS. AS DICK DARMAN RECENTLY REMINDED ME: "TORTURE NUMBERS -- AND THEY'LL CONFESS TO ANYTHING. " III NO, WE'RE REALLY TALKING ABOUT PEOPLE -- PEOPLE WHO HOLD THE TWO AND A HALF MILLION NEW JOBS CREATED SINCE I TOOK OFFICE ONE YEAR AGO. FOR THEM, IT MEANS FAMILIES AND FREEDOM. IT MEANS DIGNITY AND DECENCY. BECAUSE TWO AND A HALF MILLION AMERICAN JOBS MEANS TWO AND A HALF MILLION AMERICAN FUTURES. 111 ((AND, SPEAKING OF THE FUTURE -- EARLIER I ASKED ONE C.E.O. WHAT HE SEES AS THE MOST LUCRATIVE GROWTH INDUSTRY IN THE 90'S. HE SAID: "BEING A LAWYER CONNECTED WITH THE TRUMP CASE. ")) 1111 - 7 - OUR PEOPLE AND OUR ECONOMY ARE STRONG. AND SO IS OUR RESOLVE. IT WILL SOON BE TESTED, AS THE DRAMATIC NEW CHANGES IN THE WORLD PRODUCE DRAMATIC NEW CHALLENGES IN THE WORLD MARKET. WE MUST PREPARE NOW TO MEET THESE CHALLENGES. MY ADMINISTRATION IS COMMITTED TO AN AGENDA FOR GROWTH. IT IS FOUNDED UPON INVESTING IN OUR FUTURE -- AND EVERY SOUND INVESTMENT HAS ITS YIELD -- AMERICA'S YIELD IS THE "GROWTH DIVIDEND. " III THE GROWTH DIVIDEND WILL PROVIDE AMERICANS WITH JOBS AND OPPORTUNITY, HIGHER LIVING STANDARDS AND A LEGACY OF PROSPERITY. so ACHIEVING SOLID AND SUSTAINABLE GROWTH IS MY MOST FUNDAMENTAL DOMESTIC PRIORITY. IT IS WHY I HAVE PROPOSED A STRONG AGENDA OF GROWTH INITIATIVES. THIS IS A MARATHON -- NOT A SPRINT. WE CAN'T PRODUCE THE PRODUCTS NEEDED TO CAPTURE WORLD MARKETS BY FOCUSING ON RESULTS ONE QUARTER AT A TIME. WE NEED TO RETURN NOT ONLY TO YESTERDAY'S VALUES BUT ALSO YESTERDAY'S THINKING -- THE "LONG-TERM THINKING" AND "INVESTMENT-IN-THE-FUTURE" WAY OF DOING BUSINESS THAT PRODUCED THE HEALTHY CLIMATE WE ENJOY TODAY. - 8 - FIRST, WE NEED TO BRING MORE OF AMERICA'S INVESTMENT CAPITAL BACK INTO THE PRODUCTIVE ECONOMY. LOWERING THE COST OF CAPITAL WILL ASSURE THE CONTINUED INVESTMENT IN PRODUCTIVE ASSETS AND HUMAN RESOURCES NEEDED TO KEEP OUR MANUFACTURING SECTOR THE MOST COMPETITIVE IN THE WORLD. THE BOTTOM LINE: IT'S TIME FOR CONGRESS TO PASS THE CAPITAL GAINS TAX CUT. III HERE'S WHAT WE'RE UP AGAINST: JAPAN -- ABOUT 5 PERCENT. SOUTH KOREA -- ZERO. TAIWAN -- ZERO. WEST GERMANY -- ZERO. SINGAPORE -- ZERO. HONG KONG -- ZERO. THE LIST GOES ON. WE NEED YOUR SUPPORT FOR THIS CRITICAL TAX CUT. AMERICA WANTS IT DONE RIGHT. 11 AMERICA WANTS IT DONE RESPONSIBLY. 11 AND AMERICA WANTS IT DONE NOW. 1111 - 9 - SECOND, WE NEED TO KEEP INTEREST RATES DOWN. 11 AND WE'RE COMMITTED TO HELPING THAT PROCESS BY GOING TO THE HEART OF THE MATTER: MY ADMINISTRATION SUBMITTED A BUDGET THAT WILL CONTINUE TO BRING THE FEDERAL DEFICIT DOWN. AND TODAY I CALL ON THE BUDGET COMMITTEES TO FULFILL THEIR LEGAL RESPONSIBILITIES -- AND COME UP WITH A BUDGET RESOLUTION BY APRIL 1ST. THAT'S TWO WEEKS AWAY. IT'S TIME TO ACT. IT'S TIME TO BRING THE DEFICIT DOWN. THIRD, AMERICA NEEDS A BOOSTER SHOT OF NEW IDEAS ALONG WITH THE INFUSION OF NEW CAPITAL OUR TAX CUT WILL PROVIDE. MATCHING INVESTMENT CAPITAL WITH INTELLECTUAL CAPITAL. AND I CALL ON CONGRESS TO HELP SHARPEN AMERICA'S COMPETITIVE EDGE: DOUBLE THE BUDGET OF THE NATIONAL SCIENCE FOUNDATION. BRING FUNDING FOR RESEARCH AND DEVELOPMENT TO A RECORD HIGH. MAKE THE RESEARCH AND EXPERIMENTATION TAX CREDIT PERMANENT. AND EXPAND THE EISENHOWER EDUCATION GRANTS FOR MATH AND SCIENCE. - 10 - FOURTH, WE MUST STAND BEHIND OUR WORKFORCE AND THE QUALITY OF OUR PRODUCTS. AMERICAN WORKERS TODAY ARE GOOD WORKERS -- THE BEST IN THE WORLD. BUT WE NEED TO KEEP PACE. THEIR CHILDREN ARE THE WORKERS OF TOMORROW, AND WE OWE THEM A BETTER EDUCATION, WITH AN EMPHASIS ON BASIC SKILLS, THE SCIENCES, MATH AND ENGINEERING. WE'RE GOING TO DO THIS IN PARTNERSHIP WITH AMERICA'S GOVERNORS AND SCHOOLS. GIVING THOSE IN NEED A FAIR START THROUGH PROJECT HEAD START. RAISING OUR HIGH SCHOOL GRADUATION RATES TO AT LEAST 90 PERCENT. AND IN SCIENCE AND MATH OUR GOAL IS UNAMBIGUOUS -- FIRST IN THE WORLD BY THE YEAR 2000. III WE'VE GOT TO RE-ESTABLISH STANDARDS AND RE- ESTABLISH EXPECTATIONS -- THE KIND OF "QUALITY CONTROL" so ESSENTIAL TO EVERYTHING AMERICA PRODUCES. QUALITY IS SOMETHING YOU UNDERSTAND. AND QUALITY IN MANUFACTURING AND QUALITY IN EDUCATION ARE INTERTWINED. - 11 - THESE GOALS ARE AN IMPORTANT STEP TOWARDS RESTORING QUALITY IN EDUCATION. THEY HELP FOCUS OUR EFFORTS LESS ON INPUT -- THE AMOUNT OF MONEY THAT GOES INTO OUR SCHOOLS AND MORE ON OUTPUT -- THE QUALITY OF STUDENT THAT COMES OUT. THIS KIND OF BASIC QUALITY CONTROL IS ALSO BASIC TO PRODUCING QUALITY GOODS. AND IT'S BEING SPURRED ON IN AMERICAN MANUFACTURING BY STEPS TAKEN WITHIN YOUR OWN RANKS -- STEPS LIKE THE PRESTIGIOUS, HIGH-LEVEL COMPETITION PRODUCED BY AWARDS LIKE THOSE NAMED AFTER THE LATE MAC BALDRIGE. IT'S ALSO SPURRED ON BY EFFORTS TO ENSURE A LITERATE WORKFORCE. WE SALUTE MANUFACTURERS' EFFORTS LIKE THE ONE BARBARA VISITED RECENTLY IN MICHIGAN -- A MODEL OF COOPERATION BETWEEN THE FORD MOTOR COMPANY AND THE UNITED AUTO WORKERS. AND FINALLY, IT'S ESSENTIAL THAT WE HAVE A DRUG- FREE WORKFORCE. ONE WAY TO STOP DRUGS AT WORK IS TO MAKE SURE IT NEVER STARTS. PRE-EMPLOYMENT DRUG SCREENING. BECAUSE IF YOU'RE NOT PART OF THE SOLUTION -- YOU'RE PART OF THE PROBLEM. - 12 - A DRUG-IMPAIRED WORKFORCE IS ONE OF THE WAYS IN WHICH AMERICAN COMPETITIVENESS CAN SUFFER FROM A SELF-INFLICTED BURDEN. BUT IT'S NOT THE ONLY ONE. SO NEXT, I CALL FOR CONGRESS TO ACT NOW TO MAKE THE U.S. MARKETPLACE WORK BETTER THROUGH TWO BASIC REFORMS: PRODUCT LIABILITY REFORM -- TO INCREASE OUR COMPETITIVENESS WITHOUT COMPROMISING SAFETY. AND ANTI-TRUST REFORM -- TO REMOVE OBSTACLES TO JOINT PRODUCTION VENTURES BY U.S. COMPANIES. III I AM ALSO CONVINCED THAT AMERICA'S GROWTH NEED NOT COME AT THE EXPENSE OF THE ENVIRONMENT. OUR NATURAL RESOURCES ARE INVALUABLE ASSETS -- AND LIKE ANY OTHER ASSETS, THEY NEED TO BE MAINTAINED IN ORDER TO SUSTAIN OUR ABILITY TO GROW. - 13 - FOR 13 YEARS, CONGRESS HAS BEEN UNABLE TO PASS A NEW CLEAN AIR ACT. TWO WEEKS AGO, WE REACHED A BREAKTHROUGH -- A BI-PARTISAN AGREEMENT TO UNTANGLE THE WEB OF REGIONAL POLITICS THAT HAS STOPPED CLEAN AIR. I COMPLIMENT THE SENATE LEADERSHIP FOR THEIR VERY CONSTRUCTIVE NEGOTIATIONS. AND TODAY I CALL UPON THE SENATE TO NOW PASS CLEAN AIR -- TO STAND BY THE AGREEMENT -- AND TO PROTECT OUR ENVIRONMENT WITHOUT SADDLING THE BILL WITH NEW SUBSIDIES AND CUMBERSOME RULES. III I MENTIONED SELF-INFLICTED BURDENS -- AND OF COURSE -- NOT ALL OUR COMPETITIVE BURDENS ARE SELF- INFLICTED. THERE ARE ALSO FOREIGN BARRIERS TO U.S. EXPORTS WHICH MUST BE ADDRESSED. AND EARLIER THIS MONTH PRIME MINISTER KAIFU AND I AGREED ON THE NEED FOR ACTION ON WHAT WE CALL THE "STRUCTURAL IMPEDIMENTS INITIATIVE" TO BREAK DOWN NON-TARIFF BARRIERS TO THE JAPANESE MARKET. AND WE ARE PRESSING HARD TO GET THE JAPANESE GOVERNMENT TO ADDRESS SPECIFIC TRADE CATEGORIES. IIII - 14 - WE MUST MOVE AGGRESSIVELY TO OPEN MARKETS, NOT JUST IN JAPAN BUT AROUND THE WORLD -- AND EXPAND OUR SHARE OF GLOBAL TRADE. III I STILL BELIEVE THAT -- FOR FAR-REACHING, FUNDAMENTAL REFORM -- OUR BEST HOPE IS THE PROPOSALS WE'VE MADE IN THE URUGUAY ROUND OF THE GATT NEGOTIATIONS. WE'RE DETERMINED TO MAKE A LEVEL PLAYING FIELD. LET AMERICA COMPETE IN AN ARENA OF FAIR TRADE -- AND WE'LL TAKE ON ANYONE, ANYTIME, ANYWHERE. 111 AS IN BERLIN, BARRIERS ARE COMING DOWN ALL OVER THE WORLD. IT TOOK YEARS OF PERSISTENCE, BUT THE IDEAS CHAMPIONED BY AMERICA -- FREEDOM, DEMOCRACY, COMPETITION, AND INVESTMENT -- ARE FLOURISHING BECAUSE THEY WORK, BECAUSE THEY ARE THE BEST. IT CAN BE THE SAME FOR AMERICAN GOODS. - 15 - IN 1986, ON THE EVE OF JULY 4TH, A SINGLE BLUE LASER SPLIT THE DARKNESS OVER NEW YORK HARBOR -- A MAN-MADE LIGHTNING BOLT THAT RE-LIT THE TORCH OF A RE- BORN STATUE OF LIBERTY. THE TORCH HAS BEEN HELD HIGH EVER SINCE. AND TODAY THAT LIGHT CONTINUES TO INSPIRE HOPE FROM PANAMA TO PRAGUE, FROM MOSCOW TO MANAGUA. III SOMEHOW, A RECENT BIT OF NEWS SEEMS FITTING: THE BALD EAGLE -- THE AMERICAN EAGLE -- MAY SOON COME OFF THE ENDANGERED SPECIES LIST. 11 LADIES AND GENTLEMEN -- AMERICA IS BACK. 11 AND THIS TIME, AMERICA IS BACK TO STAY. 111 GOD BLESS YOU. AND GOD BLESS THE U.S.A. # # insert A brond, We need to keep interest rates down. and we're committed to helping the heart of the that process by to BaD[WE MUST REDUCE THE DEFICIT. My administration this that will continue to do submitted a plan budget exactly that. and today d call on the Budget their bgal responsibilities Committees to fulfill BOLD a Budget resolution by and come up with april 1st, HA that THAT's TWO WEEKS AWAY. — THE WHITE HOUSE WASHINGTON butst committees ugal fifie come up w/ usp Bud to res my 2 41, Octimy with away ] THE WHITE HOUSE WASHINGTON 1990 MAR 13 PM 6: 59 March 13, 1990 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON cw FROM: EDWARD McNALLY and SUBJECT: NATIONAL ASSOCIATION OF MANUFACTURERS SPEECH I. SUMMARY Attached are draft remarks for Thursday morning's address to the annual meeting of the National Association of Manufacturers. II. DISCUSSION At 10:30 a.m. on Thursday, March 15, 1990, you are scheduled to arrive onstage at the Ramada Renaissance at Techworld in Washington to address approximately 500 executives from manufacturing companies. The address (17 minutes, TelePrompTer) emphasizes the accomplishments and initiatives of your Administration on economic and business issues. It is intended as a significant address, taking stock of the full range of your Administration's many initiatives to maintain America's strong economic leadership. The tone is upbeat in the first half, emphasizing the good economic news and the spread of freedom around the world. The second half emphasizes your broad-based, comprehensive proposals for ensuring continued economic growth: The capital gains tax cut, new funding for R & D, the new education goals, and drug-free workplaces. Fundamental reform in trade, product liability, and anti-trust laws. And a pitch for the Clean Air compromise. McNally/Simon March 13, 1990 Draft Three (B:NAM) PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF MANUFACTURERS RAMADA RENAISSANCE AT TECHWORLD THURSDAY, MARCH 15, 1990, 10:30 A.M. Thank you, Dan [KRUMM, N.A.M. CHAIRMAN]. [ACKNOWLEDGEMENTS] I told Barbara I'd be spending some time with people who have risen to the top of the financial world by controlling the disbursement of billions of dollars. She said: "You're addressing the baseball lawyers?" 1111 Baseball's "Opening Day" may not be on the calendar yet. But the truth is, the calendar offers each of us many "opening days" -- convenient launch points for a fresh start. Sometimes it is a new day, a new year. Now, it's a new decade -- a decade born amid shouts of joy and triumph, a decade full of hope, barrelling with confidence towards a new century and a new era. The roll call is exciting, exhilarating, accelerating. We call it the "Revolution of '89," but in Poland, it took about 10 years. Then in Hungary, about 10 months. East Germany, 10 weeks. Czechoslovakia, 10 days. And Bulgaria and Romania right behind. Six nations in 6 months. And from 6 different tongues we heard the same one word -- FREEDOM. The people of Central Europe believed it. They fought for it. And they deserve the credit. But take that word "FREEDOM" sometime, pick it up out of the newsprint and turn it over. And look on the back. More often than not, you'll find the same proud label that adorns the products you produce: "MADE IN THE U.S.A." 2 Eight years ago, Ronald Reagan stood before this very group and issued a bold and simple challenge. He said: "America can serve as the catalyst for an era of unimagined human freedom and dignity." 111 And the cry of that great President became the "shout heard 'round the world." III "MADE IN THE U.S.A." Back here, especially in Washington, there may be some still plagued by the demons of doom and doubt. Maybe in Washington. But not in Warsaw. Asked if Radio Free Europe had been important to democracy in Poland, Lech Walesa responded with a question of his own: "Would there be Earth without the Sun?" Maybe in Washington. But not in Wenceslaus Square. Last month Vaclav Havel praised our resolve as "defender[s] of freedom," telling Congress that Czechoslovakia probably wouldn't exist today if it hadn't been for the Atlantic alliance. And no quotes are needed to tell you the role of American persistence and American courage in liberating the peoples of in standing for liberty Panama and Nicaragua. 1111 Yes, these are heady times. But the good news isn't only overseas. Because the Revolution of '89 marks the triumph not only of free ideas -- but also free markets. And when it comes to free markets, America continues to lead the way. III Here again, there are doubters. So let me speak as plainly as I can: The U.S. economy is the largest, strongest, most productive economy on Earth. With less than five percent of the 3 world's people, in 1988 Americans accounted for more than 25 percent of the world's production. Our G.N.P. is more than two and a half times that of the world's No. 2 economy -- Japan. And when a small percentage of people produce a huge percentage of wealth, there's a word for it. It's called "productivity." And it's spelled "U-S-A." III Thanks in no small part to the commitment and imagination of the people and companies represented here in this room, last year American exports of goods and services hit an all-time high -- over $600 billion. Today, the United States is once again the world's No. 1 exporter. For our families, for our children, that helps keep America's standard of living far and away the highest of any (and our Handard of livis? major industrialized country in the world One-third higher than that of West Germany or Japan. 1989 marked our seventh consecutive year of economic growth. Today, we see GNP -- up. Exports -- up. Personal income -- up. Now, some would say that every economy has its ups and downs. But take a look at what's down: The trade deficit is down. The federal deficit -- down. The prime rate -- down. And last year's unemployment rate -- down -- the lowest since 1973. But we're not just talking about statistics and numbers. As Dick Darman recently reminded me: "Torture numbers -- and they'll confess to anything." 111 You who run the factories, you who sign the paychecks, you No, will really talling about people - people who hold insert A The with growth durdend will provide American higher with jobs and opportunity, higher lows standards and a legary of prosperity. If will provide So achieving solid ad sustainable growth is my most fendamental donestic priority. It is why I have proposed a strong agenda of youth initiatives. the 4 new know what it means to have created two and a half million jobs created for them since I took office one year ago. It means families and freedom. It means dignity and decency. Because two and a half million American jobs means two and a half million American futures. III ( (And, speaking of the future -- earlier I asked one C.E.O. what he sees as the most lucrative growth industry in the 90's. He said: "Being a lawyer connected with the Trump case. ")) Our people and our economy are strong. And so is our resolve. It will soon be tested, as the dramatic new changes in the world produce dramatic new challenges in the world market. America must prepare now to meet these challenges. Family committed to an agenda far growth Administration is pressing forward with our plan to keep America Bold It is founded upon the investing in our future - and every sound competitive, and to keep America's economy second to none. 111 investment has its yield- America yield stis the growth durdend. First, we need to bring more of America's investment capital back into the productive economy. Lowering the cost of capital will assure the continued investment in physical assets and human resources needed to keep our manufacturing sector the most competitive in the world -- a world where virtually none of our competitors fully taxes capital gains. This is a marathon -- not a sprint. We can't produce the products needed to capture world markets by focusing on results one quarter at a time. We need to return not only to yesterday's values but also yesterday's thinking -- the "long-term thinking" and "investment-in-the-future" way of doing business that produced the healthy climate we enjoy today. The bottom line: It's time for Congress to pass the capital 5 gains tax cut. III America wants it done right. 11 America wants it done responsibly. 11 And America wants it done NOW. 1111 Along with this infusion of new capital, Second, America needs a booster shot of new ideas Matching investment capital with intellectual capital. And I call on Congress to help sharpen America's competitive edge,by acting on our new proposals. Doubling the budget of the National Science Foundation. Bring Record- toa record high high funding for Research and Development. Making the Research and Experimentation tax credit permanent. Ant70 percent expansion of the Eisenhower education grants for math and science. Third we must standbehind best we can offer And as always, our workforce comes first. American workers and the quality of own products. today are good workers -- the best in the world. But we need to keep pace. Their children are the workers of tomorrow, and we owe them a better education, with more emphasis on basic skills, the sciences, math and engineering. We're going to do this in partnership with America's governors and schools. Giving those in need a fair start through Project Head Start. Raising our high school graduation rates to at least 90 percent. And in science and math our goal is unambiguous -- first in the world by the Year 2000. III We've got to re-establish standards and re-establish expectations -- the kind of "quality control" so essential to everything America produces. Quality is something you understand. And quality in manufacturing and quality in education are intertwined. 6 That why we need a literate workforce. And We salute manufacturers¹ efforts like the one Barbara visited recently in Michigan -- a model of cooperation between the Ford Motor Company and the United Auto Workers. These goals are an important step towards restoring quality in education. They help focus our efforts less on input -- the amount of money that goes into our schools -- and more on output -- the quality of student that comes out. This kind of basic quality control is also basic to producing quality goods. And it's being spurred on in American manufacturing by steps taken within your own ranks -- steps like the prestigious, high-level competition produced by awards like those named after my old friend Mac Baldrige. It's also signed on the late Let me mention by effort to exame Ip There one final education goal -- maybe the most And finally it's essential that important. We need schools that are free from crime. Free from we have ading- chaos. And that means -- free from drugs. III free the workforce And what's true for the American school goes double for the American workplace. One way to stop drugs at work is to make sure it never starts. Pre-employment drug screening. Because if you're not part of the solution -- you're part of the problem. A drug-impaired workforce is one of the ways in which American competitiveness can suffer from a self-inflicted burden. # So next, But it's not the only one. I call for Congress to act now to make the U.S. marketplace work better through two basic reforms: Product liability reform -- to increase our competitiveness without compromising safety. And anti-trust reform -- to remove obstacles to 7 encourage joint production ventures by U.S. companies. 111 I am also convinced that America's growth need not come at the expense of the environment. Our natural resources are invaluable assets -- and like any other assets, they need to be maintained in order to sustain our ability to grow. For 13 years, Congress has been unable to pass a new Clean Air Act. Two weeks ago, we reached a breakthrough -- a bi- partisan agreement to untangle the web of regional politics that has stopped clean air. I compliment the Senate leadership for their very constructive negotiations. And today I call upon the Senate to now pass Clean Air -- to stand by the agreement -- and to protect our environment without saddling the bill with new subsidies and cumbersome rules. III I mentioned self-inflicted burdens -- and of course -- not all our competitive burdens are self-inflicted. There are also foreign barriers to U.S. exports which must be addressed. And earlier this month Prime Minister Kaifu and I agreed on the need for action on what we call the "Structural Impediments Initiative" to break down non-tariff barriers to the Japanese Chick market. And we are pressing hard to open Japanese markets to address specific trade categories. construction, American satellites, telecommunications, super computers, forest products, and yes, American semi-conductors. 1111 We must and will move aggressively to open markets and expand our share of world trade. III I still believe that -- for far-reaching, fundamental reform -- our best hope is the proposals we've made in the Uruguay Round 8 of the GATT negotiations. We're determined to make a level playing field: Let America compete in an arena of fair trade -- and will take on anyone, anywhere. and just like in the Olympics -- we'll always bring home our share of gold. III As in Berlin, barriers are coming down all over the world. the ideas changioned by America freedom, It took years of persistence, but American ideas were accepted, denocracy competition finally, because they work, because they are the best. It can be are the same for American goods. In 1986, on the eve of July 4th, a single blue laser split the darkness over New York harbor -- a man-made lightning bolt that re-lit the torch of a re-born Statue of Liberty. The torch has been held high ever since. And today that light continues to inspire hope from Panama to Prague, from Sophia to Seoul, from Moscow to Managua III Somehow, a recent bit of news seems fitting: The bald eagle -- the American eagle -- may soon come off the endangered species list. 11 Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. 111 Thank you for your warm greeting. God bless you. And God bless the U.S.A. # # # THE WHITE HOUSE WASHINGTON March 14, 1990 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON cw FROM: EDWARD MCNALLY our SUBJECT: REVISED NAT'L. ASSOC. OF MANUFACTURERS SPEECH Attached is a set of revised remarks for tomorrow morning's address to the annual meeting of the National Association of Manufacturers. As Governor Sununu requested, this draft reflects both your initial comments as well as those provided by Roger Porter. McNally/Simon March 14, 1990 Draft Five (B:NAM) PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF MANUFACTURERS RAMADA RENAISSANCE AT TECHWORLD THURSDAY, MARCH 15, 1990, 10:30 A.M. Thank you, Dan [KRUMM, N.A.M. CHAIRMAN]. And I want to salute your president -- Jerry Jasinowski. I told Barbara I'd be spending some time with people who have risen to the top of the financial world by controlling the disbursement of billions of dollars. She said: "You're addressing the baseball lawyers?" 1111 Baseball's "Opening Day" may not be on the calendar yet. But the truth is, the calendar offers each of us many "opening days" -- convenient launch points for a fresh start. Sometimes it is a new day, a new year. Now, it's a new decade -- a decade born amid shouts of joy and triumph, a decade full of hope, barrelling with confidence towards a new century and a new era. The roll call is exciting, exhilarating, accelerating. We call it the "Revolution of '89," but in Poland, it took about 10 years. Then in Hungary about 10 months. East Germany, 10 weeks. Czechoslovakia, 10 days. And Bulgaria and Romania right behind. Six nations in 6 months. And from 6 different tongues we heard the same one word -- FREEDOM. The people of Central Europe believed it. They fought for it. And they deserve the credit. But take that word "FREEDOM" sometime, pick it up out of the newsprint and turn it over. And look on the back. More often than not, you'll find the same proud label that adorns the products you produce: "MADE IN AMERICA." 2 Eight years ago, Ronald Reagan stood before this very group and issued a bold and simple challenge. He said: "America can serve as the catalyst for an era of unimagined human freedom and dignity." 111 And the cry of that great President became the "shout heard 'round the world." Back here, especially in Washington, there may be some still plagued by doubt. 11 Maybe in Washington. But not in Warsaw. Asked if Radio Free Europe had been important to democracy in Poland, Lech Walesa responded with a question of his own: "Would there be Earth without the Sun?" Maybe in Washington. But not in Wenceslaus Square. Last month Vaclav Havel praised our resolve as "defender[s] of freedom," telling Congress that Czechoslovakia probably wouldn't exist today if it hadn't been for the Atlantic alliance. And no quotes are needed to tell you the role of American persistence and American courage in standing for liberty in Panama and Nicaragua. Yes, these are heady times. But the good news isn't only overseas. Because the Revolution of '89 marks the triumph not only of free ideas -- but also free markets. 11 And when it comes to free markets, America continues to lead the way. 111 Here again, there are doubters. Some who worry about a slowdown. True, our economy is not perfect, and I don't want to paint an unrealistic picture. But look at the facts: The U.S. economy is the largest, strongest, most productive economy on Earth. Our standard of living is one-third higher than that of 3 West Germany or Japan. With less than five percent of the world's people, in 1988 Americans accounted for more than 25 percent of the world's production. Our G.N.P. is more than two and a half times that of the world's No. 2 economy -- Japan. And when a small percentage of people produce a huge percentage of wealth, there's a word for it. It's called "productivity." And it's spelled "U-S-A." 111 Thanks in no small part to the commitment and imagination of the people and companies represented here in this room, last year American exports of goods and services hit an all-time high -- over $600 billion. And today, the United States is once again the world's No.1 exporter. 1989 marked our seventh consecutive year of economic growth. Today, we see GNP -- up. Exports -- up. Personal income -- up. Now, some would say that every economy has its ups and downs. But take a look at what's down: The trade deficit is down. The federal deficit -- down. The prime rate -- down. And last year's unemployment rate -- down -- the lowest since 1973. But we're not just talking about statistics and numbers. As Dick Darman recently reminded me: "Torture numbers -- and they'll confess to anything." III No, we're really talking about people -- people who hold the two and a half million new jobs created since I took office one year ago. For them, it means families and freedom. It means dignity and decency. Because two and a half million American 4 jobs means two and a half million American futures. 111 ((And, speaking of the future -- earlier I asked one C.E.O. what he sees as the most lucrative growth industry in the 90's. He said: "Being a lawyer connected with the Trump case. ")) Our people and our economy are strong. And so is our resolve. It will soon be tested, as the dramatic new changes in the world produce dramatic new challenges in the world market. We must prepare now to meet these challenges. My Administration is committed to an agenda for growth. It is founded upon investing in our future -- and every sound investment has its yield -- America's yield is the "Growth Dividend." III The growth dividend will provide Americans with jobs and opportunity, higher living standards and a legacy of prosperity. So achieving solid and sustainable growth is my most fundamental domestic priority. It is why I have proposed a strong agenda of growth initiatives. First, we need to bring more of America's investment capital back into the productive economy. Lowering the cost of capital will assure the continued investment in productive assets and human resources needed to keep our manufacturing sector the most competitive in the world -- a world where virtually none of our competitors fully taxes capital gains. This is a marathon -- not a sprint. We can't produce the products needed to capture world markets by focusing on results one quarter at a time. We need to return not only to yesterday's values but also yesterday's thinking -- the "long-term thinking" 5 and "investment-in-the-future" way of doing business that produced the healthy climate we enjoy today. The bottom line: It's time for Congress to pass the capital gains tax cut. III America wants it done right. 11 America wants it done responsibly. 11 And America wants it done NOW. Second, we need to keep interest rates down. 11 And we're committed to helping that process by going to the heart of the matter: My Administration submitted a budget that will continue to bring the federal deficit down. And today I call on the Budget Committees to fulfill their legal responsibilities -- and come up with a Budget resolution by April 1st. That's two weeks away. It's time to act. It's time to bring the deficit down. III Third, America needs a booster shot of new ideas along with the infusion of new capital our tax cut will provide. Matching investment capital with intellectual capital. And I call on Congress to help sharpen America's competitive edge: double the budget of the National Science Foundation. Bring funding for Research and Development to a record high. Make the Research and Experimentation tax credit permanent. And expand the Eisenhower education grants for math and science. Fourth, we must stand behind our workforce and the quality of our products. American workers today are good workers -- the best in the world. But we need to keep pace. Their children are the workers of tomorrow, and we owe them a better education, with an emphasis on basic skills, the sciences, math and engineering. 6 We're going to do this in partnership with America's governors and schools. Giving those in need a fair start through Project Head Start. Raising our high school graduation rates to at least 90 percent. And in science and math our goal is unambiguous -- first in the world by the Year 2000. III We've got to re-establish standards and re-establish expectations -- the kind of "quality control" so essential to everything America produces. Quality is something you understand. And quality in manufacturing and quality in education are intertwined. These goals are an important step towards restoring quality in education. They help focus our efforts less on input -- the amount of money that goes into our schools -- and more on output -- the quality of student that comes out. This kind of basic quality control is also basic to producing quality goods. And it's being spurred on in American manufacturing by steps taken within your own ranks -- steps like the prestigious, high-level competition produced by awards like those named after the late Mac Baldrige. It's also spurred on by efforts to ensure a literate workforce. We salute manufacturers' efforts like the one Barbara visited recently in Michigan -- a model of cooperation between the Ford Motor Company and the United Auto Workers. And finally, it's essential that we have a drug-free workforce. One way to stop drugs at work is to make sure it never starts. Pre-employment drug screening. Because if you're 7 not part of the solution -- you're part of the problem. A drug-impaired workforce is one of the ways in which American competitiveness can suffer from a self-inflicted burden. But it's not the only one. so next, I call for Congress to act now to make the U.S. marketplace work better through two basic reforms: Product liability reform -- to increase our competitiveness without compromising safety. And anti-trust reform -- to remove obstacles to joint production ventures by U.S. companies. III I am also convinced that America's growth need not come at the expense of the environment. Our natural resources are invaluable assets -- and like any other assets, they need to be maintained in order to sustain our ability to grow. For 13 years, Congress has been unable to pass a new Clean Air Act. Two weeks ago, we reached a breakthrough -- a bi- partisan agreement to untangle the web of regional politics that has stopped clean air. I compliment the Senate leadership for their very constructive negotiations. And today I call upon the Senate to now pass Clean Air -- to stand by the agreement -- and to protect our environment without saddling the bill with new subsidies and cumbersome rules. III I mentioned self-inflicted burdens -- and of course -- not all our competitive burdens are self-inflicted. There are also foreign barriers to U.S. exports which must be addressed. And earlier this month Prime Minister Kaifu and I agreed on the need for action on what we call the "Structural Impediments 8 Initiative" to break down non-tariff barriers to the Japanese market. And we are pressing hard to get the Japanese government to address specific trade categories. IIII We must move aggressively to open markets, not just in Japan but around the world -- and expand our share of global trade. III I still believe that -- for far-reaching, fundamental reform -- our best hope is the proposals we've made in the Uruguay Round of the GATT negotiations. We're determined to make a level playing field. Let America compete in an arena of fair trade -- and we'll take on anyone, anytime, anywhere. III As in Berlin, barriers are coming down all over the world. It took years of persistence, but the ideas championed by America -- freedom, democracy, competition, and investment -- are flourishing because they work, because they are the best. It can be the same for American goods. In 1986, on the eve of July 4th, a single blue laser split the darkness over New York harbor -- a man-made lightning bolt that re-lit the torch of a re-born Statue of Liberty. The torch has been held high ever since. And today that light continues to inspire hope from Panama to Prague, from Moscow to Managua. III Somehow, a recent bit of news seems fitting: The bald eagle -- the American eagle -- may soon come off the endangered species list. 11 Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. III God bless you. And God bless the U.S.A. # # TO POTUS 3/14 McNally/Simon March 14, 1990 Draft Four (B:NAM) PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF MANUFACTURERS RAMADA RENAISSANCE AT TECHWORLD THURSDAY, MARCH 15, 1990, 10:30 A.M. Thank you, Dan [KRUMM, N.A.M. CHAIRMAN]. And I want to salute your president -- Jerry Jasinowski. I told Barbara I'd be spending some time with people who have risen to the top of the financial world by controlling the disbursement of billions of dollars. She said: "You're addressing the baseball lawyers?" 1111 Baseball's "Opening Day" may not be on the calendar yet. But the truth is, the calendar offers each of us many "opening days" -- convenient launch points for a fresh start. Sometimes it is a new day, a new year. Now, it's a new decade -- a decade born amid shouts of joy and triumph, a decade full of hope, barrelling with confidence towards a new century and a new era. The roll call is exciting, exhilarating, accelerating. We call it the "Revolution of '89," but in Poland, it took about 10 years. Then in Hungary about 10 months. East Germany, 10 weeks. Czechoslovakia, 10 days. And Bulgaria and Romania right behind. Six nations in 6 months. And from 6 different tongues we heard the same one word -- FREEDOM. The people of Central Europe believed it. They fought for it. And they deserve the credit. But take that word "FREEDOM" sometime, pick it up out of the newsprint and turn it over. And look on the back. More often than not, you'll find the same proud label that adorns the products you produce: "MADE IN THE U.S.A." 2 Eight years ago, Ronald Reagan stood before this very group and issued a bold and simple challenge. He said: "America can serve as the catalyst for an era of unimagined human freedom and dignity." III And the cry of that great President became the "shout heard 'round the world." "MADE IN THE U.S.A." Back here, especially in Washington, there may be some still plagued by the demons of doom and doubt. Maybe in Washington. But not in Warsaw. Asked if Radio Free Europe had been important to democracy in Poland, Lech Walesa responded with a question of his own: "Would there be Earth without the Sun?" Maybe in Washington. But not in Wenceslaus Square. Last month Vaclav Havel praised our resolve as "defender[s] of freedom," telling Congress that Czechoslovakia probably wouldn't exist today if it hadn't been for the Atlantic alliance. And no quotes are needed to tell you the role of American persistence and American courage in standing for liberty in Panama and Nicaragua. Yes, these are heady times. But the good news isn't only overseas. Because the Revolution of '89 marks the triumph not only of free ideas -- but also free markets. 11 And when it comes to free markets, America continues to lead the way. 111 Here again, there are doubters. So let me speak plainly: The U.S. economy is the largest, strongest, most productive economy on Earth. Our standard of living is one-third higher than that of West Germany or Japan. With less than five percent 3 of the world's people, in 1988 Americans accounted for more than 25 percent of the world's production. Our G.N.P. is more than two and a half times that of the world's No. 2 economy -- Japan. And when a small percentage of people produce a huge percentage of wealth, there's a word for it. It's called "productivity." And it's spelled "U-S-A." III Thanks in no small part to the commitment and imagination of the people and companies represented here in this room, last year American exports of goods and services hit an all-time high -- over $600 billion. And today, the United States is once again the world's No.1 exporter. 1989 marked our seventh consecutive year of economic growth. Today, we see GNP -- up. Exports -- up. Personal income -- up. Now, some would say that every economy has its ups and downs. But take a look at what's down: The trade deficit is down. The federal deficit -- down. The prime rate -- down. And last year's unemployment rate -- down -- the lowest since 1973. But we're not just talking about statistics and numbers. As Dick Darman recently reminded me: "Torture numbers -- and they'll confess to anything." III No, we're really talking about people -- people who hold the two and a half million new jobs created since I took office one year ago. For them, it means families and freedom. It means dignity and decency. Because two and a half million American jobs means two and a half million American futures. III 4 ((And, speaking of the future -- earlier I asked one C.E.O. what he sees as the most lucrative growth industry in the 90's. He said: "Being a lawyer connected with the Trump case.")) Our people and our economy are strong. And so is our resolve. It will soon be tested, as the dramatic new changes in the world produce dramatic new challenges in the world market. We must prepare now to meet these challenges. My Administration is committed to an agenda for growth. It is founded upon investing in our future -- and every sound investment has its yield -- America's yield is the "Growth Dividend." III The growth dividend will provide Americans with jobs and opportunity, higher living standards and a legacy of prosperity. So achieving solid and sustainable growth is my most fundamental domestic priority. It is why I have proposed a strong agenda of growth initiatives. First, we need to bring more of America's investment capital back into the productive economy. Lowering the cost of capital will assure the continued investment in physical assets and human resources needed to keep our manufacturing sector the most competitive in the world -- a world where virtually none of our competitors fully taxes capital gains. This is a marathon -- not a sprint. We can't produce the products needed to capture world markets by focusing on results one quarter at a time. We need to return not only to yesterday's values but also yesterday's thinking -- the "long-term thinking" and "investment-in-the-future" way of doing business that 5 produced the healthy climate we enjoy today. The bottom line: It's time for Congress to pass the capital gains tax cut. America wants it done right. America wants it done responsibly. 11 And America wants it done NOW. 1111 Second, we need to keep interest rates down. And we're committed to helping that process by going to the heart of the matter: My Administration submitted a budget that will continue to bring the federal deficit down. And today I call on the Budget Committees to fulfill their legal responsibilities -- and come up with a Budget resolution by April 1st. That's two weeks away. It's time to act. It's time to bring the deficit down. Third, America needs a booster shot of new ideas along with the infusion of new capital our tax cut will provide. Matching investment capital with intellectual capital. And I call on Congress to help sharpen America's competitive edge: double the budget of the National Science Foundation. Bring funding for Research and Development to a record high. Make the Research and Experimentation tax credit permanent. And expand the Eisenhower education grants for math and science. Fourth, we must stand behind our workforce and the quality of our products. American workers today are good workers -- the best in the world. But we need to keep pace. Their children are the workers of tomorrow, and we owe them a better education, with an emphasis on basic skills, the sciences, math and engineering. We're going to do this in partnership with America's 6 governors and schools. Giving those in need a fair start through Project Head Start. Raising our high school graduation rates to at least 90 percent. And in science and math our goal is unambiguous -- first in the world by the Year 2000. III We've got to re-establish standards and re-establish expectations -- the kind of "quality control" so essential to everything America produces. Quality is something you understand. And quality in manufacturing and quality in education are intertwined. These goals are an important step towards restoring quality in education. They help focus our efforts less on input -- the amount of money that goes into our schools -- and more on output -- the quality of student that comes out. This kind of basic quality control is also basic to producing quality goods. And it's being spurred on in American manufacturing by steps taken within your own ranks -- steps like the prestigious, high-level competition produced by awards like those named after the late Mac Baldrige. It's also spurred on by efforts to ensure a literate workforce. We salute manufacturers' efforts like the one Barbara visited recently in Michigan -- a model of cooperation between the Ford Motor Company and the United Auto Workers. And finally, it's essential that we have a drug-free workforce. One way to stop drugs at work is to make sure it never starts. Pre-employment drug screening. Because if you're not part of the solution -- you're part of the problem. 7 A drug-impaired workforce is one of the ways in which American competitiveness can suffer from a self-inflicted burden. But it's not the only one. So next, I call for Congress to act now to make the U.S. marketplace work better through two basic reforms: Product liability reform -- to increase our competitiveness without compromising safety. And anti-trust reform -- to remove obstacles to joint production ventures by U.S. companies. 111 I am also convinced that America's growth need not come at the expense of the environment. Our natural resources are invaluable assets -- and like any other assets, they need to be maintained in order to sustain our ability to grow. For 13 years, Congress has been unable to pass a new Clean Air Act. Two weeks ago, we reached a breakthrough -- a bi- partisan agreement to untangle the web of regional politics that has stopped clean air. I compliment the Senate leadership for their very constructive negotiations. And today I call upon the Senate to now pass Clean Air -- to stand by the agreement -- and to protect our environment without saddling the bill with new subsidies and cumbersome rules. 111 I mentioned self-inflicted burdens -- and of course -- not all our competitive burdens are self-inflicted. There are also foreign barriers to U.S. exports which must be addressed. And earlier this month Prime Minister Kaifu and I agreed on the need for action on what we call the "Structural Impediments Initiative" to break down non-tariff barriers to the Japanese 8 market. And we are pressing hard to open Japanese markets to address specific trade categories. We must and will move aggressively to open markets and expand our share of world trade. 111 I still believe that -- for far-reaching, fundamental reform -- our best hope is the proposals we've made in the Uruguay Round of the GATT negotiations. We're determined to make a level playing field. Let America compete in an arena of fair trade -- and we'll take on anyone, anytime, anywhere. 111 As in Berlin, barriers are coming down all over the world. It took years of persistence, but the ideas championed by America -- freedom, democracy, competition, and investment -- are flourishing because they work, because they are the best. It can be the same for American goods. In 1986, on the eve of July 4th, a single blue laser split the darkness over New York harbor -- a man-made lightning bolt that re-lit the torch of a re-born Statue of Liberty. The torch has been held high ever since. And today that light continues to inspire hope from Panama to Prague, from Moscow to Managua. III Somehow, a recent bit of news seems fitting: The bald eagle -- the American eagle -- may soon come off the endangered species list. 11 Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. III God bless you. And God bless the U.S.A. # # # THE WHITE HOUSE WASHINGTON March 14, 1990 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON cw FROM: EDWARD McNALLY our SUBJECT: REVISED NAT'L. ASSOC. OF MANUFACTURERS SPEECH Attached is a set of revised remarks for tomorrow morning's address to the annual meeting of the National Association of Manufacturers. As Governor Sununu requested, this draft reflects both your initial comments as well as those provided by Roger Porter. McNally/Simon March 14, 1990 Draft Five (B:NAM) PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF MANUFACTURERS RAMADA RENAISSANCE AT TECHWORLD THURSDAY, MARCH 15, 1990, 10:30 A.M. Thank you, Dan [KRUMM, N.A.M. CHAIRMAN]. And I want to salute your president -- Jerry Jasinowski. I told Barbara I'd be spending some time with people who have risen to the top of the financial world by controlling the disbursement of billions of dollars. She said: "You're addressing the baseball lawyers?" 1111 Baseball's "Opening Day" may not be on the calendar yet. But the truth is, the calendar offers each of us many "opening days" -- convenient launch points for a fresh start. Sometimes it is a new day, a new year. Now, it's a new decade -- a decade born amid shouts of joy and triumph, a decade full of hope, barrelling with confidence towards a new century and a new era. The roll call is exciting, exhilarating, accelerating. We call it the "Revolution of '89," but in Poland, it took about 10 years. Then in Hungary about 10 months. East Germany, 10 weeks. Czechoslovakia, 10 days. And Bulgaria and Romania right behind. Six nations in 6 months. And from 6 different tongues we heard the same one word -- FREEDOM. The people of Central Europe believed it. They fought for it. And they deserve the credit. But take that word "FREEDOM" sometime, pick it up out of the newsprint and turn it over. And look on the back. More often than not, you'll find the same proud label that adorns the products you produce: "MADE IN AMERICA." 2 Eight years ago, Ronald Reagan stood before this very group and issued a bold and simple challenge. He said: "America can serve as the catalyst for an era of unimagined human freedom and dignity." III And the cry of that great President became the "shout heard 'round the world." 111 Back here, especially in Washington, there may be some still plagued by doubt. 11 Maybe in Washington. But not in Warsaw. Asked if Radio Free Europe had been important to democracy in Poland, Lech Walesa responded with a question of his own: "Would there be Earth without the Sun?" Maybe in Washington. But not in Wenceslaus Square. Last month Vaclav Havel praised our resolve as "defender[s] of freedom," telling Congress that Czechoslovakia probably wouldn't exist today if it hadn't been for the Atlantic alliance. And no quotes are needed to tell you the role of American persistence and American courage in standing for liberty in Panama and Nicaragua. 1111 Yes, these are heady times. But the good news isn't only overseas. Because the Revolution of '89 marks the triumph not only of free ideas -- but also free markets. 11 And when it comes to free markets, America continues to lead the way. III Here again, there are doubters. Some who worry about a slowdown. True, our economy is not perfect, and I don't want to paint an unrealistic picture. But look at the facts: The U.S. economy is the largest, strongest, most productive economy on Earth. Our standard of living is one-third higher than that of 3 West Germany or Japan. With less than five percent of the world's people, in 1988 Americans accounted for more than 25 percent of the world's production. Our G.N.P. is more than two and a half times that of the world's No. 2 economy -- Japan. And when a small percentage of people produce a huge percentage of wealth, there's a word for it. It's called "productivity." And it's spelled "U-S-A." III Thanks in no small part to the commitment and imagination of the people and companies represented here in this room, last year American exports of goods and services hit an all-time high -- over $600 billion. And today, the United States is once again the world's No.1 exporter. 1989 marked our seventh consecutive year of economic growth. Today, we see GNP -- up. Exports -- up. Personal income -- up. Now, some would say that every economy has its ups and downs. But take a look at what's down: The trade deficit is down. The federal deficit -- down. The prime rate -- down. And last year's unemployment rate -- down -- the lowest since 1973. But we're not just talking about statistics and numbers. As Dick Darman recently reminded me: "Torture numbers -- and they'll confess to anything." 111 No, we're really talking about people -- people who hold the two and a half million new jobs created since I took office one year ago. For them, it means families and freedom. It means dignity and decency. Because two and a half million American 4 jobs means two and a half million American futures. III ((And, speaking of the future -- earlier I asked one C.E.O. what he sees as the most lucrative growth industry in the 90's. He said: "Being a lawyer connected with the Trump case. ")) 1111 Our people and our economy are strong. And so is our resolve. It will soon be tested, as the dramatic new changes in the world produce dramatic new challenges in the world market. We must prepare now to meet these challenges. My Administration is committed to an agenda for growth. It is founded upon investing in our future -- and every sound investment has its yield -- America's yield is the "Growth Dividend." III The growth dividend will provide Americans with jobs and opportunity, higher living standards and a legacy of prosperity. So achieving solid and sustainable growth is my most fundamental domestic priority. It is why I have proposed a strong agenda of growth initiatives. First, we need to bring more of America's investment capital back into the productive economy. Lowering the cost of capital will assure the continued investment in productive assets and human resources needed to keep our manufacturing sector the most competitive in the world -- a world where virtually none of our competitors fully taxes capital gains. This is a marathon -- not a sprint. We can't produce the products needed to capture world markets by focusing on results one quarter at a time. We need to return not only to yesterday's values but also yesterday's thinking -- the "long-term thinking" 5 and "investment-in-the-future" way of doing business that produced the healthy climate we enjoy today. The bottom line: It's time for Congress to pass the capital gains tax cut. 111 America wants it done right. 11 America wants it done responsibly. 11 And America wants it done NOW. 1111 Second, we need to keep interest rates down. 11 And we're committed to helping that process by going to the heart of the matter: My Administration submitted a budget that will continue to bring the federal deficit down. And today I call on the Budget Committees to fulfill their legal responsibilities -- and come up with a Budget resolution by April 1st. That's two weeks away. It's time to act. It's time to bring the deficit down. Third, America needs a booster shot of new ideas along with the infusion of new capital our tax cut will provide. Matching investment capital with intellectual capital. And I call on Congress to help sharpen America's competitive edge: double the budget of the National Science Foundation. Bring funding for Research and Development to a record high. Make the Research and Experimentation tax credit permanent. And expand the Eisenhower education grants for math and science. Fourth, we must stand behind our workforce and the quality of our products. American workers today are good workers -- the best in the world. But we need to keep pace. Their children are the workers of tomorrow, and we owe them a better education, with an emphasis on basic skills, the sciences, math and engineering. 6 We're going to do this in partnership with America's governors and schools. Giving those in need a fair start through Project Head Start. Raising our high school graduation rates to at least 90 percent. And in science and math our goal is unambiguous -- first in the world by the Year 2000. III We've got to re-establish standards and re-establish expectations -- the kind of "quality control" so essential to everything America produces. Quality is something you understand. And quality in manufacturing and quality in education are intertwined. These goals are an important step towards restoring quality in education. They help focus our efforts less on input -- the amount of money that goes into our schools -- and more on output -- the quality of student that comes out. This kind of basic quality control is also basic to producing quality goods. And it's being spurred on in American manufacturing by steps taken within your own ranks -- steps like the prestigious, high-level competition produced by awards like those named after the late Mac Baldrige. It's also spurred on by efforts to ensure a literate workforce. We salute manufacturers' efforts like the one Barbara visited recently in Michigan -- a model of cooperation between the Ford Motor Company and the United Auto Workers. And finally, it's essential that we have a drug-free workforce. One way to stop drugs at work is to make sure it never starts. Pre-employment drug screening. Because if you're 7 not part of the solution -- you're part of the problem. A drug-impaired workforce is one of the ways in which American competitiveness can suffer from a self-inflicted burden. But it's not the only one. So next, I call for Congress to act now to make the U.S. marketplace work better through two basic reforms: Product liability reform -- to increase our competitiveness without compromising safety. And anti-trust reform -- to remove obstacles to joint production ventures by U.S. companies. 111 I am also convinced that America's growth need not come at the expense of the environment. Our natural resources are invaluable assets -- and like any other assets, they need to be maintained in order to sustain our ability to grow. For 13 years, Congress has been unable to pass a new Clean Air Act. Two weeks ago, we reached a breakthrough -- a bi- partisan agreement to untangle the web of regional politics that has stopped clean air. I compliment the Senate leadership for their very constructive negotiations. And today I call upon the Senate to now pass Clean Air -- to stand by the agreement -- and to protect our environment without saddling the bill with new subsidies and cumbersome rules. III I mentioned self-inflicted burdens -- and of course -- not all our competitive burdens are self-inflicted. There are also foreign barriers to U.S. exports which must be addressed. And earlier this month Prime Minister Kaifu and I agreed on the need for action on what we call the "Structural Impediments 8 Initiative" to break down non-tariff barriers to the Japanese get the govt market. And we are pressing hard to open Japanese markets to address specific trade categories. 1111 but around not just in Japan the world We must and will global move aggressively to open markets and expand our share of world trade. III I still believe that -- for far-reaching, fundamental reform -- our best hope is the proposals we've made in the Uruguay Round of the GATT negotiations. We're determined to make a level playing field. Let America compete in an arena of fair trade -- and we'll take on anyone, anytime, anywhere. III As in Berlin, barriers are coming down all over the world. It took years of persistence, but the ideas championed by America -- freedom, democracy, competition, and investment -- are flourishing because they work, because they are the best. It can be the same for American goods. In 1986, on the eve of July 4th, a single blue laser split the darkness over New York harbor -- a man-made lightning bolt that re-lit the torch of a re-born Statue of Liberty. The torch has been held high ever since. And today that light continues to inspire hope from Panama to Prague, from Moscow to Managua. III Somehow, a recent bit of news seems fitting: The bald eagle -- the American eagle -- may soon come off the endangered species list. 11 Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. III God bless you. And God bless the U.S.A. # # # 121374SS Document No. WHITE HOUSE STAFFING MEMORANDUM 90 MAR 14 P2:44 DATE: 3/14/90 ACTION/CONCURRENCE/COMMENT DUE BY: --- SUBJECT: PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF MANUFACTURERS ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN ROGICH BATES UNTERMEYER CARD ROGERS CICCONI WINSTON DEMAREST PINKERTON FITZWATER BOSKIN GRAY HAGIN REMARKS: The attached has been forwarded to the President. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 THE WHITE HOUSE WASHINGTON March 14, 1990 1990 MAR in M 10: INFORMATION 56 MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON cw FROM: EDWARD MCNALLY and SUBJECT: NATIONAL ASSOCIATION OF MANUFACTURERS SPEECH I. SUMMARY Attached are draft remarks for Thursday morning's address to the annual meeting of the National Association of Manufacturers. II. DISCUSSION At 10:30 a.m. on Thursday, March 15, 1990, you are scheduled to arrive onstage at the Ramada Renaissance at Techworld in Washington to address approximately 500 executives from manufacturing companies. The address (16 minutes, TelePrompTer) emphasizes the accomplishments and initiatives of your Administration on economic and business issues. It is intended as a significant address, taking stock of the full range of your Administration's many initiatives to maintain America's strong economic leadership. The tone is upbeat in the first half, emphasizing the good economic news and the spread of freedom around the world. The second half emphasizes your broad-based, comprehensive proposals for ensuring continued economic growth: The capital gains tax cut, new funding for R & D, the new education goals, and drug-free workplaces. Fundamental reform in trade, product liability, and anti-trust laws. And a pitch for the Clean Air compromise. McNally/Simon March 14, 1990 Draft Four (B:NAM) PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF MANUFACTURERS RAMADA RENAISSANCE AT TECHWORLD THURSDAY, MARCH 15, 1990, 10:30 A.M. Thank you, Dan [KRUMM, N.A.M. CHAIRMAN]. And I want to salute your president -- Jerry Jasinowski. I told Barbara I'd be spending some time with people who have risen to the top of the financial world by controlling the disbursement of billions of dollars. She said: "You're addressing the baseball lawyers?" 1111 Baseball's "Opening Day" may not be on the calendar yet. But the truth is, the calendar offers each of us many "opening days" -- convenient launch points for a fresh start. Sometimes it is a new day, a new year. Now, it's a new decade -- a decade born amid shouts of joy and triumph, a decade full of hope, barrelling with confidence towards a new century and a new era. The roll call is exciting, exhilarating, accelerating. We call it the "Revolution of '89," but in Poland, it took about 10 years. Then in Hungary about 10 months. East Germany, 10 weeks. Czechoslovakia, 10 days. And Bulgaria and Romania right behind. Six nations in 6 months. And from 6 different tongues we heard the same one word -- FREEDOM. The people of Central Europe believed it. They fought for it. And they deserve the credit. But take that word "FREEDOM" sometime, pick it up out of the newsprint and turn it over. And look on the back. More often than not, you'll find the same proud label that adorns the products you produce: "MADE IN THE U.S.A." 2 Eight years ago, Ronald Reagan stood before this very group and issued a bold and simple challenge. He said: "America can serve as the catalyst for an era of unimagined human freedom and dignity." 111 And the cry of that great President became the "shout heard 'round the world. 111 "MADE IN THE U.S.A." Back here, especially in Washington, there may be some still plagued by the demons of doom and doubt. Maybe in Washington. But not in Warsaw. Asked if Radio Free Europe had been important to democracy in Poland, Lech Walesa responded with a question of his own: "Would there be Earth without the Sun?" Maybe in Washington. But not in Wenceslaus Square. Last month Vaclav Havel praised our resolve as "defender[s] of freedom," telling Congress that Czechoslovakia probably wouldn't exist today if it hadn't been for the Atlantic alliance. And no quotes are needed to tell you the role of American persistence and American courage in standing for liberty in Panama and Nicaragua. Yes, these are heady times. But the good news isn't only overseas. Because the Revolution of '89 marks the triumph not only of free ideas -- but also free markets. 11 And when it comes to free markets, America continues to lead the way. 111 Here again, there are doubters. So let me speak plainly: The U.S. economy is the largest, strongest, most productive economy on Earth. Our standard of living is one-third higher than that of West Germany or Japan. With less than five percent 3 of the world's people, in 1988 Americans accounted for more than 25 percent of the world's production. Our G.N.P. is more than two and a half times that of the world's No. 2 economy -- Japan. And when a small percentage of people produce a huge percentage of wealth, there's a word for it. It's called "productivity." And it's spelled "U-S-A." 111 Thanks in no small part to the commitment and imagination of the people and companies represented here in this room, last year American exports of goods and services hit an all-time high -- over $600 billion. And today, the United States is once again the world's No.1 exporter. 1989 marked our seventh consecutive year of economic growth. Today, we see GNP -- up. Exports -- up. Personal income -- up. Now, some would say that every economy has its ups and downs. But take a look at what's down: The trade deficit is down. The federal deficit -- down. The prime rate -- down. And last year's unemployment rate -- down -- the lowest since 1973. But we're not just talking about statistics and numbers. As Dick Darman recently reminded me: "Torture numbers -- and they'll confess to anything." III No, we're really talking about people -- people who hold the two and a half million new jobs created since I took office one year ago. For them, it means families and freedom. It means dignity and decency. Because two and a half million American jobs means two and a half million American futures. III 4 ((And, speaking of the future -- earlier I asked one C.E.O. what he sees as the most lucrative growth industry in the 90's. He said: "Being a lawyer connected with the Trump case.")) 1111 Our people and our economy are strong. And so is our resolve. It will soon be tested, as the dramatic new changes in the world produce dramatic new challenges in the world market. We must prepare now to meet these challenges. My Administration is committed to an agenda for growth. It is founded upon investing in our future -- and every sound investment has its yield -- America's yield is the "Growth Dividend." 111 The growth dividend will provide Americans with jobs and opportunity, higher living standards and a legacy of prosperity. So achieving solid and sustainable growth is my most fundamental domestic priority. It is why I have proposed a strong agenda of growth initiatives. First, we need to bring more of America's investment capital back into the productive economy. Lowering the cost of capital will assure the continued investment in physical assets and human resources needed to keep our manufacturing sector the most competitive in the world -- a world where virtually none of our competitors fully taxes capital gains. This is a marathon -- not a sprint. We can't produce the products needed to capture world markets by focusing on results one quarter at a time. We need to return not only to yesterday's values but also yesterday's thinking -- the "long-term thinking" and "investment-in-the-future" way of doing business that 5 produced the healthy climate we enjoy today. The bottom line: It's time for Congress to pass the capital gains tax cut. America wants it done right. 11 America wants it done responsibly. 11 And America wants it done NOW. 1111 Second, we need to keep interest rates down. 11 And we're committed to helping that process by going to the heart of the matter: My Administration submitted a budget that will continue to bring the federal deficit down. And today I call on the Budget Committees to fulfill their legal responsibilities -- and come up with a Budget resolution by April 1st. That's two weeks away. It's time to act. It's time to bring the deficit down. III Third, America needs a booster shot of new ideas along with the infusion of new capital our tax cut will provide. Matching investment capital with intellectual capital. And I call on Congress to help sharpen America's competitive edge: double the budget of the National Science Foundation. Bring funding for Research and Development to a record high. Make the Research and Experimentation tax credit permanent. And expand the Eisenhower education grants for math and science. Fourth, we must stand behind our workforce and the quality of our products. American workers today are good workers -- the best in the world. But we need to keep pace. Their children are the workers of tomorrow, and we owe them a better education, with an emphasis on basic skills, the sciences, math and engineering. We're going to do this in partnership with America's 6 governors and schools. Giving those in need a fair start through Project Head Start. Raising our high school graduation rates to at least 90 percent. And in science and math our goal is unambiguous -- first in the world by the Year 2000. III We've got to re-establish standards and re-establish expectations -- the kind of "quality control" so essential to everything America produces. Quality is something you understand. And quality in manufacturing and quality in education are intertwined. These goals are an important step towards restoring quality in education. They help focus our efforts less on input -- the amount of money that goes into our schools -- and more on output -- the quality of student that comes out. This kind of basic quality control is also basic to producing quality goods. And it's being spurred on in American manufacturing by steps taken within your own ranks -- steps like the prestigious, high-level competition produced by awards like those named after the late Mac Baldrige. It's also spurred on by efforts to ensure a literate workforce. We salute manufacturers' efforts like the one Barbara visited recently in Michigan -- a model of cooperation between the Ford Motor Company and the United Auto Workers. And finally, it's essential that we have a drug-free workforce. One way to stop drugs at work is to make sure it never starts. Pre-employment drug screening. Because if you're not part of the solution -- you're part of the problem. 7 A drug-impaired workforce is one of the ways in which American competitiveness can suffer from a self-inflicted burden. But it's not the only one. So next, I call for Congress to act now to make the U.S. marketplace work better through two basic reforms: Product liability reform -- to increase our competitiveness without compromising safety. And anti-trust reform -- to remove obstacles to joint production ventures by U.S. companies. III I am also convinced that America's growth need not come at the expense of the environment. Our natural resources are invaluable assets -- and like any other assets, they need to be maintained in order to sustain our ability to grow. For 13 years, Congress has been unable to pass a new Clean Air Act. Two weeks ago, we reached a breakthrough -- a bi- partisan agreement to untangle the web of regional politics that has stopped clean air. I compliment the Senate leadership for their very constructive negotiations. And today I call upon the Senate to now pass Clean Air -- to stand by the agreement -- and to protect our environment without saddling the bill with new subsidies and cumbersome rules. III I mentioned self-inflicted burdens -- and of course -- not all our competitive burdens are self-inflicted. There are also foreign barriers to U.S. exports which must be addressed. And earlier this month Prime Minister Kaifu and I agreed on the need for action on what we call the "Structural Impediments Initiative" to break down non-tariff barriers to the Japanese 8 market. And we are pressing hard to open Japanese markets to address specific trade categories. We must and will move aggressively to open markets and expand our share of world trade. III I still believe that -- for far-reaching, fundamental reform -- our best hope is the proposals we've made in the Uruguay Round of the GATT negotiations. We're determined to make a level playing field. Let America compete in an arena of fair trade -- and we'll take on anyone, anytime, anywhere. 111 As in Berlin, barriers are coming down all over the world. It took years of persistence, but the ideas championed by America -- freedom, democracy, competition, and investment -- are flourishing because they work, because they are the best. It can be the same for American goods. In 1986, on the eve of July 4th, a single blue laser split the darkness over New York harbor -- a man-made lightning bolt that re-lit the torch of a re-born Statue of Liberty. The torch has been held high ever since. And today that light continues to inspire hope from Panama to Prague, from Moscow to Managua. III Somehow, a recent bit of news seems fitting: The bald eagle -- the American eagle -- may soon come off the endangered species list. 11 Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. III God bless you. And God bless the U.S.A. # # # THE WHITE HOUSE WASHINGTON March 13, 1990 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON cw FROM: EDWARD McNALLY EMW SUBJECT: NATIONAL ASSOCIATION OF MANUFACTURERS SPEECH I. SUMMARY Attached are draft remarks for Thursday morning's address to the annual meeting of the National Association of Manufacturers. II. DISCUSSION At 10:30 a.m. on Thursday, March 15, 1990, you are scheduled to arrive onstage at the Ramada Renaissance at Techworld in Washington to address approximately 500 executives from manufacturing companies. 24 The address (17 minutes, TelePrompTer) emphasizes the accomplishments and initiatives of your Administration on economic and business issues. It is intended as a significant address, taking stock of the full range of your Administration's many initiatives to maintain America's strong economic leadership. The tone is upbeat in the first half, emphasizing the good economic news and the spread of freedom around the world. The second half emphasizes your broad-based, comprehensive proposals for ensuring continued economic growth: The capital gains tax cut, new funding for R & D, the new education goals, and drug-free workplaces. Fundamental reform in trade, product liability, and anti-trust laws. And a pitch for the Clean Air compromise. McNally/Simon March 13, 1990 Draft Three (B:NAM) PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF MANUFACTURERS RAMADA RENAISSANCE AT TECHWORLD THURSDAY, MARCH 15, 1990, 10:30 A.M. Thank you, Dan [KRUMM, N.A.M. CHAIRMAN]. [ACKNOWLEDGEMENTS] I told Barbara I'd be spending some time with people who have risen to the top of the financial world by controlling the disbursement of billions of dollars. She said: "You're addressing the baseball lawyers?" 1111 Baseball's "Opening Day" may not be on the calendar yet. But the truth is, the calendar offers each of us many "opening days" -- convenient launch points for a fresh start. Sometimes it is a new day, a new year. Now, it's a new decade -- a decade born amid shouts of joy and triumph, a decade full of hope, barrelling with confidence towards a new century and a new era. The roll call is exciting, exhilarating, accelerating. We call it the "Revolution of '89," but in Poland, it took about 10 years. Then in Hungary, about 10 months. East Germany, 10 weeks. Czechoslovakia, 10 days. And Bulgaria and Romania right behind. Six nations in 6 months. And from 6 different tongues we heard the same one word -- FREEDOM. The people of Central Europe believed it. They fought for it. And they deserve the credit. But take that word "FREEDOM" sometime, pick it up out of the newsprint and turn it over. And look on the back. More often than not, you'll find the same proud label that adorns the products you produce: "MADE IN THE U.S.A." 2 Eight years ago, Ronald Reagan stood before this very group and issued a bold and simple challenge. He said: "America can serve as the catalyst for an era of unimagined human freedom and dignity." III And the cry of that great President became the "shout heard 'round the world." III "MADE IN THE U.S.A." Back here, especially in Washington, there may be some still plagued by the demons of doom and doubt. Maybe in Washington. But not in Warsaw. Asked if Radio Free Europe had been important to democracy in Poland, Lech Walesa responded with a question of his own: "Would there be Earth without the Sun?" Maybe in Washington. But not in Wenceslaus Square. Last month Vaclav Havel praised our resolve as "defender[s] of freedom," telling Congress that Czechoslovakia probably wouldn't exist today if it hadn't been for the Atlantic alliance. And no quotes are needed to tell you the role of American persistence and American courage in liberating the peoples of Panama and Nicaragua. 1111 Yes, these are heady times. But the good news isn't only overseas. Because the Revolution of '89 marks the triumph not only of free ideas -- but also free markets. And when it comes to free markets, America continues to lead the way. 111 Here again, there are doubters. So let me speak as plainly as I can: The U.S. economy is the largest, strongest, most productive economy on Earth. With less than five percent of the 3 world's people, in 1988 Americans accounted for more than 25 percent of the world's production. Our G.N.P. is more than two and a half times that of the world's No. 2 economy -- Japan. And when a small percentage of people produce a huge percentage of wealth, there's a word for it. It's called "productivity." And it's spelled "U-S-A." 111 Thanks in no small part to the commitment and imagination of the people and companies represented here in this room, last year American exports of goods and services hit an all-time high -- over $600 billion. Today, the United States is once again the world's No. 1 exporter. For our families, for our children, that helps keep America's standard of living far and away the highest of any major industrialized country in the world. One-third higher than that of West Germany or Japan. 1989 marked our seventh consecutive year of economic growth. Today, we see GNP -- up. Exports -- up. Personal income -- up. Now, some would say that every economy has its ups and downs. But take a look at what's down: The trade deficit is down. The federal deficit -- down. The prime rate -- down. And last year's unemployment rate -- down -- the lowest since 1973. But we're not just talking about statistics and numbers. As Dick Darman recently reminded me: "Torture numbers -- and they'll confess to anything." III You who run the factories, you who sign the paychecks, you 4 know what it means to have created two and a half million jobs since I took office one year ago. It means families and freedom. It means dignity and decency. Because two and a half million American jobs means two and a half million American futures. III ((And, speaking of the future -- earlier I asked one C.E.O. what he sees as the most lucrative growth industry in the 90's. He said: "Being a lawyer connected with the Trump case.")) Our people and our economy are strong. And so is our resolve. It will soon be tested, as the dramatic new changes in the world produce dramatic new challenges in the world market. America must prepare now to meet these challenges. And my Administration is pressing forward with our plan to keep America competitive, and to keep America's economy second to none. III First, we need to bring more of America's investment capital back into the productive economy. Lowering the cost of capital will assure the continued investment in physical assets and human resources needed to keep our manufacturing sector the most competitive in the world -- a world where virtually none of our competitors fully taxes capital gains. This is a marathon -- not a sprint. We can't produce the products needed to capture world markets by focusing on results one quarter at a time. We need to return not only to yesterday's values but also yesterday's thinking -- the "long-term thinking" and "investment-in-the-future" way of doing business that produced the healthy climate we enjoy today. The bottom line: It's time for Congress to pass the capital 5 gains tax cut. 111 America wants it done right. 11 America wants it done responsibly. 11 And America wants it done NOW. Along with this infusion of new capital, America needs a booster shot of new ideas. Matching investment capital with intellectual capital. And I call on Congress to help sharpen America's competitive edge by acting on our new proposals. Doubling the budget of the National Science Foundation. Record- high funding for Research and Development. Making the Research and Experimentation tax credit permanent. A 70 percent expansion of the Eisenhower education grants for math and science. And as always, our workforce comes first. American workers today are good workers -- the best in the world. But we need to keep pace. Their children are the workers of tomorrow, and we owe them a better education, with more emphasis on basic skills, the sciences, math and engineering. " We're going to do this in partnership with America's governors and schools. Giving those in need a fair start through Project Head Start. Raising our high school graduation rates to at least 90 percent. And in science and math our goal is unambiguous -- first in the world by the Year 2000. 111 We've got to re-establish standards and re-establish expectations -- the kind of "quality control" so essential to everything America produces. Quality is something you understand. And quality in manufacturing and quality in education are intertwined. 6 That's why we need a literate workforce. And we salute manufacturers! efforts like the one Barbara visited recently in Michigan -- a model of cooperation between the Ford Motor Company and the United Auto Workers. These goals are an important step towards restoring quality in education. They help focus our efforts less on input -- the amount of money that goes into our schools -- and more on output -- the quality of student that comes out. This kind of basic quality control is also basic to producing quality goods. And it's being spurred on in American manufacturing by steps taken within your own ranks -- steps like the prestigious, high-level competition produced by awards like those named after my old friend Mac Baldrige. There's one final education goal -- maybe the most important. We need schools that are free from crime. Free from chaos. And that means -- free from drugs. # And what's true for the American school goes double for the American workplace. One way to stop drugs at work is to make sure it never starts. Pre-employment drug screening. Because if you're not part of the solution -- you're part of the problem. A drug-impaired workforce is one of the ways in which American competitiveness can suffer from a self-inflicted burden. But it's not the only one. I call for Congress to act now to make the U.S. marketplace work better through two basic reforms: Product liability reform -- to increase our competitiveness without compromising safety. And anti-trust reform -- to 7 encourage joint production ventures by U.S. companies. III I am also convinced that America's growth need not come at the expense of the environment. Our natural resources are invaluable assets -- and like any other assets, they need to be maintained in order to sustain our ability to grow. For 13 years, Congress has been unable to pass a new Clean Air Act. Two weeks ago, we reached a breakthrough -- a bi- partisan agreement to untangle the web of regional politics that has stopped clean air. I compliment the Senate leadership for their very constructive negotiations. And today I call upon the Senate to now pass Clean Air -- to stand by the agreement -- and to protect our environment without saddling the bill with new subsidies and cumbersome rules. III I mentioned self-inflicted burdens -- and of course -- not all our competitive burdens are self-inflicted. There are also foreign barriers to U.S. exports which must be addressed. And earlier this month Prime Minister Kaifu and I agreed on the need for action on what we call the "Structural Impediments Initiative" to break down non-tariff barriers to the Japanese market. And we are pressing hard to open Japanese markets to American satellites, telecommunications, super computers, forest products, and yes, American semi-conductors. We must and will move aggressively to open markets and expand our share of world trade. III I still believe that -- for far-reaching, fundamental reform -- our best hope is the proposals we've made in the Uruguay Round 8 of the GATT negotiations. We're determined to make a level playing field. Let America compete in an arena of fair trade -- and just like in the Olympics -- we'll always bring home our share of gold. III As in Berlin, barriers are coming down all over the world. It took years of persistence, but American ideas were accepted, finally, because they work, because they are the best. It can be the same for American goods. In 1986, on the eve of July 4th, a single blue laser split the darkness over New York harbor -- a man-made lightning bolt that re-lit the torch of a re-born Statue of Liberty. The torch has been held high ever since. And today that light continues to inspire hope from Panama to Prague, from Sophia to Seoul, from Moscow to Managua Somehow, a recent bit of news seems fitting: The bald eagle -- the American eagle -- may soon come off the endangered species list. 11 Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. III Thank you for your warm greeting. God bless you. And God bless the U.S.A. # # # Circled ones are outstanding care x There was primotation a mistakess on Porter. WAITING FOR McClure Porter STEP Rinkerton cwedits McNally/Simon March 13, 1990 Draft Two (B:NAM) PRESIDENTIAL REMARKS: NATIONAL ASSOCIATION OF MANUFACTURERS RAMADA RENAISSANCE AT TECHWORLD THURSDAY, MARCH 15, 1990, 10:30 A.M. Thank you, Dan [KRUMM, N.A.M. CHAIRMAN]. [ACKNOWLEDGEMENTS] I told Barbara I'd be spending some time with people who have risen to the top of the financial world by controlling the disbursement of billions of dollars. She said: "You're addressing the baseball lawyers?" Baseball's "Opening Day" may not be on the calendar yet. But the truth is, the calendar offers each of us many "opening days" -- convenient launch points for a fresh start. Sometimes it is a new day, a new year. Now, it's a new decade -- a decade born amid shouts of joy and triumph, a decade full of hope, barrelling with confidence towards a new century and a new era. The roll call is exciting, exhilarating, accelerating. We call it the "Revolution of '89," but in Poland, it took about 10 years. Then in Hungary, about 10 months. East Germany, 10 weeks. Czechoslovakia, 10 days. And Bulgaria and Romania right behind. Six nations in six months. And from six different tongues we heard the same one word -- FREEDOM. But Take that word "FREEDOM" sometime, pick it up out of the newsprint and turn it over. And look on the back. More often than not, you'll find the same proud label that adorns the products you produce: "MADE IN THE U.S.A." The perpose Central Eastem Europe believed it they fought fouit they diserve the credit 2 Eight years ago, Ronald Reagan stood before this very group and issued a bold and simple challenge. He said: "America can serve as the catalyst for an era of unimagined human freedom and dignity." 111 And the cry of that great President became the "shout heard 'round the world." "MADE IN THE U.S.A." Back here, especially in Washington, there may be some still plagued by the demons of doom and doubt, some who wonder whether that proud label marks American goods and American ideas as best In the world Maybe in Washington. But not in Warsaw. Asked if Radio Free Europe had been important to democracy in Poland, Lech Walesa responded with a question of his own: "Would there be Earth without the Sun?" Maybe in Washington. But not in Wenceslaus Square. Last month Vaclav Havel praised our resolve as "defender[s] of freedom," telling a joint session of Congress that Czechoslovakia probably wouldn't exist today if it hadn't been for the Atlantic alliance. And no quotes are needed to tell you the role of American persistence and American courage in liberating the peoples of Panama and Nicaragua. Yes, these are heady times. But the good news isn't only overseas. Because the Revolution of '89 marks the triumph not only of free ideas -- but also free markets. And when it comes to free markets, America continues to lead the way. III 3 Here again, there are decitions and doubters. So let me speak as plainly as I can. The U.S. economy is the largest, strongest, most productive economy on Earth. With less than five percent of the world's people, in 1988 Americans accounted for more than 25 percent of the world's production. Our G.N.P. is more than two and a half times that of the world's No. 2 economy -- Japan. And when a small percentage of people produce a huge percentage of wealth, there's a word for it. It's called "productivity." And it's spelled "U-S-A." Thanks in no small part to the commitment and imagination of the people and companies represented here in this room, last year American exports of goods and services hit an all-time high -- over $600 billion. Today, the United States is once again the world's No. 1 exporter. For our families, for our children, that helps keep America's standard of living far and away the highest of any major industrialized country in the world. One-third higher than that of West Germany or Japan. 1989 marked our seventh consecutive year of economic growth. Today, we see GNP -- up. Exports -- up. Personal income -- up. Now, some would say that every economy has its ups and downs. But take a look at what's down: The trade deficit is down. The federal deficit -- down. The prime rate -- down. Mortgage rates down from last lost 4 summer: highs And the unemployment rate -- down - the lowest since 1973. But we're not just talking about statistics and numbers. As Dick Darman recently reminded me: "Torture numbers -- and they'll confess to anything." 111 You who run the factories, you who sign the paychecks, you know what it means to have created two and a half million jobs since I took office one year ago. It means families and freedom It means dignity and decency. Because two and a half million million American jobs means two and a half American futures. 111 Shet ( Earlier I asked one future C.E.O. what he sees as the most lucrative growt industry in the 90 S. He said: "Being a lawyer connected with the Trump case.")) Our people It and our economy are strong. And so is our resolve. They will be tested in the world economy of the future, as the dramatic new changes in the world produce dramatic new challenges in the world market. America must prepare now to meet these challenges. And my Administration is pressing forward with our plan to keep America competitive, and to keep America's economy second to none. 111 And it sure doesn't mean there's a recession ahead. First, we need to bring more of America's investment capital back into the productive economy. Lowering the cost of capital will assure the continued investment in physical assets and human resources needed to keep our manufacturing sector the most 5 competitive in the world -- a world where virtually none of our competitors fully taxes capital gains. This is a marathon -- not a sprint. We can't produce the products needed to capture world markets by focusing on results one quarter at a time. We need to return not only to yesterday's values but also yesterday's thinking -- the long-term thinking way business and "investment in the future" that produced the healthy climate we enjoy today. The bottom line: It's time for Congress to pass the capital gains tax cut. III America wants it done right. America wants it done responsibly. 11 And America wants it done NOW. Along with this infusion of new capital, America needs a booster shot of new ideas. Matching investment capital with intellectual capital. And I'm calling on Congress to help sharpen America's competitive edge by acting on our new proposals. Doubling the budget of the National Science Foundation. Record-high funding for Research and Development. Making the Research and Experimentation tax credit permanent. A 70 percent expansion of the Eisenhower education grants for math and science. And as always, our workforce comes first. American workers today are good workers -- the best in the world. But we need to keep pace. Their children are the workers of tomorrow, and we owe them a better education, with more emphasis on basic skills, the sciences, math and engineering. 6 We're going to do this in partnership with America's governors and schools. Giving those in need a fair start through Project Head Start. Raising our high school graduation rates to at least 90 percent. And in science and math our goal is unambiguous -- first in the world by the Year 2000. We've got to re-establish standards and re-establish expectations -- the kind of "quality control" so essential to everything America produces. Quality is something you understand. And quality in manufacturing and quality in education are intertwined. That's why we need a literate workforce. And we and salute manufacturers' efforts like the one Barbara visited recently in Michigan -- a model of cooperation between the Ford Motor Company and the United Auto Workers. These goals are an important step towards restoring quality in education. They help focus our efforts less on input -- the amount of money that goes in our schools -- and more on output -- the quality of student that comes out. This kind of basic quality control is also basic to producing quality goods. And it's being spurred on in American manufacturing by steps taken within your own ranks -- steps like the prestigious, high-level competition produced by awards like those named after my old friend Mac Baldridge. There's one final education goal -- maybe the most important. We need schools that are free from crime. Free from chaos. And that means -- free from drugs. III 7 And what's true for the American school goes double for the American workplace. And one way to stop drugs in the workplace is to make sure they never start. Pre-employment drug screening. Because if you're not part of the solution --- you're part of the problem. A drug-impaired workforce is one of the ways in which American competitiveness can suffer from a self-inflicted burden. But it's not the only one. I call for Congress to act immediately to make the U.S. marketplace work better through two basic reforms: Product liability reform -- to increase our competitiveness without compromising safety. And anti-trust reform -- to encourage joint production ventures by U.S. companies. III also I convinced that America's growth need not come at the expense of the environment. Our natural resources are invaluable assets -- and like any other assets, they need to be maintained in order to sustain our ability to grow. For 13 years, Congress has been unable to pass a new Clean Air Act. Two weeks ago, we reached a breakthrough -- a bi- partisan agreement to untangle the web of regional politics that has stopped clean air. I compliment the Senate leadership for their very constructive negotiations. And I call upon the Senate to now pass Clean Air -- to stand by the agreement -- and to protect our environment without saddling the bill with new subsidies and cumbersome rules. 8 But of course, not all our competitive burdens are self- inflicted. There are also foreign barriers to U.S. exports which must be addressed. And earlier this month Prime Minister Kaifu and I agreed on the need for action on what we call the "Structural Impediments Initiative" to break down non-tariff barriers to the Japanese market. Today ) in Tokyo Secretary of ) Commerce Bob Mosbacher is pressing hard on our behalf. And today in Washington our Trade Representative, Carla Hills, is pressing hard to open Japanese markets to American satellites, American telecommunications, American super computors, American forest products, and yes, American semi- conductors. We must and will move aggressively to open markets and expand our share of world trade. I still believe that -- for far-reaching, fundamental reform -- our best hope is the proposals we've made in the Uruguay Round of the GATT negotiations. We're determined to make a level playing field. Let America compete in an arena of fair trade -- and just like in the Olympics -- we'll always bring home our share of gold. As in Berlin, barriers are coming down all over the world. That is today's trend. And that is history's verdict And it is no time to turn our backs on the newly prosperous overseas markets that American courage and imagination helped produce It took years of persistence, but American ideas were 9 accepted, finally, because they work, because they are the best. It can be the same for American goods. In 1986, on the eve of July 4th, a single blue laser split the darkness over New York harbor -- a man-made lightning bolt that re-lit the torch of a re-born Statue of Liberty. The torch has been held high ever since. And today that light continues to inspire hope from Panama to Prague, from Sophia to Seoul, from Moscow to Managua III Overseas America is at peace At home, America is confident. And somehow, a recent bit of news seems fitting Because today we hear that the bald eagle -- the American eagle -- may soon come off the endangered species list. Ladies and gentlemen -- America is back. 11 And this time, America is back to stay. III Thank you for your warm greeting. God bless you. And God bless the U.S.A. # # #